Heat oil in pan you use for risotto. Add mushrooms and sauté until tender. Add salt, pepper and ground chili. Set aside.
Heat oil and butter in pan. Add shallots and sauté for 1 minute. Add rice to pan and sauté until rice loses its transparency—about 5 minutes. Add water and broth at intervals, after each liquid addition cook on low heat until absorbed. Cook for approximately 20 minutes until rice is tender. Add reserved mushrooms and cheese. Set aside.
Mix all ingredients together and let marinate until ready to grill. Preheat grill, cook each lamb rib for about 1 minute per side for medium rare.